----

----

| x                                            |      | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|----------------------------------------------|--------------------------|------------------------------------------------------------------------------------------|
|                                         |                     |                                                                                     |
| For the quarterly period ended July 31, 2010 |
|                                         |
| OR                                           |
|                                         |
| o                                            |                     | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

| Delaware                        | 94-2710559                      |
|---------------------------------|---------------------------------|
| (State or other jurisdiction of | (I.R.S. Employer Identification |
| incorporation or organization)  | Number)                         |

| Large accelerated filer o  | Accelerated filer o  | Non-accelerated filer o             | Smaller reporting company x |
|--------------------------------------|--------------------------------|-----------------------------------------------|-----------------------------|
|                                 |                           | (Do not check if a smaller reporting company) |                        |

----

----

----

- Part I — Item 1 — Financial Statements  
- Part I — Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations  
- Part I – Item 4 – Controls and Procedures  
- Part II — Item 1A — Risk Factors 

----

| PART I.        | FINANCIAL INFORMATION                                                                                      | 4      |
|----------------|------------------------------------------------------------------------------------------------------------|--------|
|           |                                                                                                       |   |
| Item 1.        | Financial Statements                                                                                       | 4      |
|           |                                                                                                       |   |
|           | Unaudited Condensed Consolidated Balance Sheets as of July 31, 2010 and April 30, 2010                     | 4      |
|           |                                                                                                       |   |
|           | Unaudited Condensed Consolidated Statements of Operations for the three monthsended July 31, 2010 and 2009 | 5      |
|           |                                                                                                       |   |
|           | Unaudited Condensed Consolidated Statements of Cash Flows for the three monthsended July 31, 2010 and 2009 | 6      |
|           |                                                                                                       |   |
|           | Notes to Unaudited Condensed Consolidated Financial Statements                                             | 7      |
|           |                                                                                                       |   |
| Item 2.        | Management’s Discussion and Analysis of Financial Condition and Results of Operations                | 21     |
|           |                                                                                                       |   |
| Item 3.        | Quantitative and Qualitative Disclosures about Market Risk                                                 | 28     |
|           |                                                                                                       |   |
| Item 4.        | Controls and Procedures                                                                                    | 28     |
|           |                                                                                                       |   |
| PART II.       | OTHER INFORMATION                                                                                          | 30     |
|           |                                                                                                       |   |
| Item 1.        | Legal Proceedings                                                                                          | 30     |
|           |                                                                                                       |   |
| Item 1A.       | Risk Factors                                                                                               | 30     |
|           |                                                                                                       |   |
| Item 6.        | Exhibits                                                                                                   | 31     |
|           |                                                                                                       |   |
| SIGNATURE      |                                                                                                       | 32     |
|           |                                                                                                       |   |
| CERTIFICATIONS |                                                                                                       | 33     |

----

|                                                                                  |                           | July 31,                                                            |                           | April 30, |
|---------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------|--------------------------------|-----------|
|                                                                                  |       | 2010                                                                |       | 2010      |
|                                                                                  |                           | (As Restated)                                                       |                           |      |
|                                                                                  |                           | See Note 2                                                          |                           |      |
| ASSETS                                                                                |                           |                                                                |                           |      |   |   |
| Current assets:                                                                       |                           |                                                                |                           |      |   |   |   |   |
|        Cash and cash equivalents                        |                           | $            | 5,380                          |      |   | $         | 3,055 |   |
|        Accounts receivable, net                         |                           |                                                                | 13,153                         |      |   |   | 6,194 |   |
|        Prepaid expenses and other current assets        |                           |                                                                | 898                            |      |   |   | 493 |   |
|        Total current assets                             |                           |                                                                | 19,431                         |      |   |   | 9,742 |   |
|                                                                                  |                           |                                                                |                           |      |   |   |   |   |
| Property and equipment, net                                                           |                           |                                                                | 2,171                          |      |   |   | 350 |   |
| Goodwill                                                                              |                           |                                                                | 33,010                         |      |   |   | 17,928 |   |
| Intangibles, net                                                                      |                           |                                                                | 22,478                         |      |   |   | 8,613 |   |
| Other assets, net                                                                     |                           |                                                                | 1,339                          |      |   |   | 228 |   |
|        Total assets                                     |                           | $                                                                   | 78,429                         |      |   | $ | 36,861 |   |
|                                                                                  |                           |                                                                |                           |      |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                  |                           |                                                                |                           |      |   |   |   |   |
| Current liabilities:                                                                  |                           |                                                                |                           |      |   |   |   |   |
|        Accounts payable                                 |                           | $                                                                   | 1,023                          |      |   | $ | 380 |   |
|        Current portion of long term debt                |                           |                                                                | 1,516                          |      |   |   | 1,397 |   |
|        Accrued compensation and related expenses        |                           |                                                                | 2,421                          |      |   |   | 1,308 |   |
|        Common stock warrant liability                   |                           |                                                                | 1,779                          |      |   |   | 1,047 |   |
|        Other accrued liabilities                        |                           |                                                                | 2,971                          |      |   |   | 2,349 |   |
|        Deferred revenue                                 |                           |                                                                | 7,961                          |      |   |   | 9,733 |   |
|        Total current liabilities                        |                           |                                                                | 17,671                         |      |   |   | 16,214 |   |
|                                                                                  |                           |                                                                |                           |      |   |   |   |   |
| Long term debt, net                                                                   |                           |                                                                | 32,948                         |      |   |   | 12 |   |
| Deferred tax liabilities, net                                                         |                           |                                                                | 473                            |      |   |   | 557 |   |
| Other long term liabilities                                                           |                           |                                                                | 628                            |      |   |   | 636 |   |
|                                                                                  |                           |                                                                |                           |      |   |   |   |   |
| Commitments and contingencies                                                         |                           |                                                                | —                        |      |   |   | — |   |
|                                                                             |                           |                                                                |                           |      |   |   |   |   |
| Stockholders’ equity:                                                           |                           |                                                                |                           |      |   |   |   |   |
|        Common stock                                     |                           |                                                                | 13                             |      |   |   | 10 |   |
|        Additional paid-in capital                       |                           |                                                                | 87,680                         |      |   |   | 79,919 |   |
|        Accumulated other comprehensive income           |                           |                                                                | 362                            |      |   |   | 383 |   |
|        Accumulated deficit                              |                           |                                                                | (61,346                        | )         |   |   | (60,870 | ) |
|        Total stockholders’ equity                 |                           |                                                                | 26,709                         |      |   |   | 19,442 |   |
|        Total liabilities and stockholders’ equity |                           | $                                                                   | 78,429                         |      |   | $ | 36,861 |   |
|                                                                             |                           |                                                                |                           |      |   |   |   |   |

----

|                                                                                                          |                           | Three Months Ended                                                        |
|---------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------------|
|                                                                                                          |                           | July 31,                                                                  |
|                                                                                                          |       | 2010                                                                      |       | 2009 |
|                                                                                                          |                           | (As Restated)                                                             |   |   |
|                                                                                                          |                           | See Note 2                                                                |   |   |
| Revenues:                                                                                                     |                           |                                                                      |   |   |   |   |   |   |
|        Software licenses                                                        |                           | $             | 1,339 |   |   | $       | 1,402 |   |
|        Maintenance and hosting                                                  |                           |                                                                      | 5,280 |   |   |   | 2,741 |   |
|        Consulting and implementation services                                   |                           |                                                                      | 3,266 |   |   |   | 368 |   |
|               Total revenues                 |                           |                                                                      | 9,885 |   |   |   | 4,511 |   |
|                                                                                                          |                           |                                                                      |   |   |   |   |   |   |
| Cost of Revenues:                                                                                             |                           |                                                                      |   |   |   |   |   |   |
|        Software licenses                                                        |                           |                                                                      | 25 |   |   |   | 38 |   |
|        Maintenance and hosting                                                  |                           |                                                                      | 495 |   |   |   | 341 |   |
|        Consulting and implementation services                                   |                           |                                                                      | 1,769 |   |   |   | 215 |   |
|               Total cost of revenues         |                           |                                                                      | 2,289 |   |   |   | 594 |   |
| Gross profit                                                                                                  |                           |                                                                      | 7,596 |   |   |   | 3,917 |   |
|                                                                                                          |                           |                                                                      |   |   |   |   |   |   |
| Operating Expenses:                                                                                           |                           |                                                                      |   |   |   |   |   |   |
|        Product development                                                      |                           |                                                                      | 1,783 |   |   |   | 1,403 |   |
|        Selling, general and administrative                                      |                           |                                                                      | 6,122 |   |   |   | 4,816 |   |
|               Total operating expenses       |                           |                                                                      | 7,905 |   |   |   | 6,219 |   |
|        Loss from operations                                                     |                           |                                                                      | (309 | ) |   |   | (2,302 | ) |
|                                                                                                          |                           |                                                                      |   |   |   |   |   |   |
| Other income (expense):                                                                                       |                           |                                                                      |   |   |   |   |   |   |
|        Gain (loss) from change in fair value of                            |                           |                                                                      |   |   |   |   |   |   |
|               common stock warrant liability |                           |                                                                      |  362 |   |   |   |  (204 | ) |
|        Interest expense                                                         |                           |                                                                      | (412 | ) |   |   | (58 | ) |
|        Other, net                                                               |                           |                                                                      | (123 | ) |   |   | 139 |   |
|               Total other expense            |                           |                                                                      | (173 | ) |   |   | (123 | ) |
|        Loss before income taxes                                                 |                           |                                                                      | (482 | ) |   |   | (2,425 | ) |
| Provision (benefit) for income taxes                                                                          |                           |                                                                      | (7 | ) |   |   | 8 |   |
|        Net loss                                                                 |                           | $                                                                         | (475 | ) |   | $ | (2,433 | ) |
|                                                                                                          |                           |                                                                      |   |   |   |   |   |   |
| Net loss per share:                                                                                           |                           |                                                                      |   |   |   |   |   |   |
|        Basic                                                                    |                           | $                                                                         | (0.04 | ) |   | $ | (0.29 | ) |
|        Dilutive                                                                 |                           | $                                                                         | (0.04 | ) |   | $ | (0.29 | ) |
|                                                                                                          |                           |                                                                      |   |   |   |   |   |   |
| Shares used in computing net loss per share:                                                                  |                           |                                                                      |   |   |   |   |   |   |
|        Basic                                                                    |                           |                                                                      | 11,240 |   |   |   | 8,367 |   |
|        Dilutive                                                                 |                           |                                                                      | 11,240 |   |   |   | 8,367 |   |

----

|                                                                                                                                                               |                           | Three Months Ended                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------------------------|
|                                                                                                                                                               |                           | July 31,                                                            |
|                                                                                                                                                               |       | 2010                                                                |       | 2009 |
|                                                                                                                                                               |                           | (As Restated)                                                       |   |   |
|                                                                                                                                                               |                           | See Note 2                                                          |   |   |
| Cash flows from operating activities:                                                                                                                              |                           |                                                                |   |   |   |   |   |   |
|        Net loss                                                                                                                      |                           | $            | (475 | ) |   | $         | (2,433 | ) |
|        Reconciliation of net loss to net cash used in operating activities:                                                          |                           |                                                                |   |   |   |   |   |   |
|               Depreciation                                                                        |                           |                                                                | 115 |   |   |   | 58 |   |
|               Amortization of intangible assets                                                   |                           |                                                                | 835 |   |   |   | 544 |   |
|               Amortization of discount on notes payable                                           |                           |                                                                | 23 |   |   |   | 11 |   |
|               Interest added to long term debt principal                                          |                           |                                                                | 44 |   |   |   | — |   |
|               Stock based compensation expense                                                    |                           |                                                                | 252 |   |   |   | 151 |   |
|               Loss (gain) from change in fair value of                                            |                           |                                                                |   |   |   |   |   |   |
|                      common stock warrant liability            |                           |                                                                | (362 | ) |   |   | 204 |   |
|               Changes in operating assets and liabilities:                                        |                           |                                                                |   |   |   |   |   |   |
|                      Accounts receivable                       |                           |                                                                | (1,139 | ) |   |   | (2,427 | ) |
|                      Prepaid expenses and other current assets |                           |                                                                | 245 |   |   |   | 251 |   |
|                      Other long term assets                    |                           |                                                                | (962 | ) |   |   | 5 |   |
|                      Accounts payable                          |                           |                                                                | 282 |   |   |   | (708 | ) |
|                      Accrued compensation and related expenses |                           |                                                                | 11 |   |   |   | (351 | ) |
|                      Other accrued liabilities                 |                           |                                                                | 311 |   |   |   | (146 | ) |
|                      Accrued acquisition costs                 |                           |                                                                | — |   |   |   | (75 | ) |
|                      Deferred revenue                          |                           |                                                                | (1,766 | ) |   |   | 2,051 |   |
|                      Other long term liabilities               |                           |                                                                | (180 | ) |   |   | (223 | ) |
| Net cash used in operating activities                                                                                                                              |                           |                                                                | (2,766 | ) |   |   | (3,088 | ) |
|                                                                                                                                                               |                           |                                                                |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                              |                           |                                                                |   |   |   |   |   |   |
|        Acquisition, net of cash acquired                                                                                             |                           |                                                                | (21,730 | ) |   |   | 118 |   |
|        Purchases of property and equipment                                                                                           |                           |                                                                | (230 | ) |   |   | (12 | ) |
| Net cash provided by (used in) investing activities                                                                                                                |                           |                                                                | (21,960 | ) |   |   | 106 |   |
|                                                                                                                                                               |                           |                                                                |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                              |                           |                                                                |   |   |   |   |   |   |
|        Payments on revolving line of credit                                                                                          |                           |                                                                | (350 | ) |   |   | — |   |
|        Borrowings on revolving line of credit                                                                                        |                           |                                                                | 4,000 |   |   |   | — |   |
|        Borrowings on term loan                                                                                                       |                           |                                                                | 24,000 |   |   |   | — |   |
|        Principal payments under debt obligations                                                                                     |                           |                                                                | (557 | ) |   |   | (147 | ) |
| Net cash provided by (used in) financing activities                                                                                                                |                           |                                                                | 27,093 |   |   |   | (147 | ) |
| Effect of exchange rate changes on cash                                                                                                                            |                           |                                                                | (42 | ) |   |   | (53 | ) |
| Net increase (decrease) in cash and cash equivalents                                                                                                               |                           |                                                                | 2,325 |   |   |   | (3,182 | ) |
| Cash and cash equivalents, beginning of period                                                                                                                     |                           |                                                                | 3,055 |   |   |   | 6,147 |   |
| Cash and cash equivalents, end of period                                                                                                                           |                           | $                                                                   | 5,380 |   |   | $ | 2,965 |   |
| Supplemental cash flow information:                                                                                                                                |                           |                                                                |   |   |   |   |   |   |
|        Cash paid during the period for:                                                                                              |                           |                                                                |   |   |   |   |   |   |
|               Interest                                                                            |                           | $                                                                   | 35 |   |   | $ | 42 |   |
|               Taxes                                                                               |                           | $                                                                   | 132 |   |   | $ | (8 | ) |
|                                                                                                                                                               |                           |                                                                |   |   |   |   |   |   |
| Supplemental non-cash financing activities:                                                                                                                        |                           |                                                                |   |   |   |   |   |   |
|        Common stock issued in conjunction with acquisition                                                                           |                           | $                                                                   | 7,217 |   |   | $ | 8,853 |   |
|        Convertible notes issued in conjunction with acquisition                                                                      |                           | $                                                                   | 6,200 |   |   | $ | — |   |

----

----

|              |                           | Number of Warrants |                           |           |                           |             |                           |                   |
|-------------------|--------------------------------|--------------------|--------------------------------|----------------|--------------------------------|------------------|--------------------------------|------------------------|
|              |                           | Outstanding at     |                           |           |                           | Expiration of    |                           | Fair Value of Warrants |
| Issuance Date     |       | July 31, 2010      |       | Exercise Price |       | Warrants         |       | at July 31, 2010       |
|              |                           |               |                           |           |                           |             |                           | (in thousands)         |
| November 20, 2006 |                           | 80,000             |                           | $1.35          |                           | October 31, 2012 |                           | $136                   |
| November 20, 2006 |                           | 166,425            |                           | $1.60          |                           | October 31, 2012 |                           | $253                   |
| November 20, 2006 |                           | 189,519            |                           | $1.90          |                           | October 31, 2012 |                           | $253                   |
| April 24, 2009    |                           | 190,182            |                           | $2.75          |                           | April 24, 2014   |                           | $198                   |
| June 29, 2010     |                           | 718,860            |                           | $3.30          |                           | June 29, 2020    |                           | $939                   |

----

| Consolidated Balance Sheet                       |                           | July 31, 2010                   |                           | July 31, 2010 |
|--------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|---------------|
| (in thousands)                                   |                           | (As previously                  |                           | (As restated) |
|                                             |       | reported)                       |       |          |
| Goodwill                                         |                           | $      | 30,917                         |          | $      | 33,010 |   |
| Total assets                                     |                           |                            | 76,336                         |          |   | 78,429 |   |
|                                             |                           |                            |                           |          |   |   |   |
| Current liabilities:                             |                           |                            |                           |          |   |   |   |
| Common stock warrant liability                   |                           |                            | —                        |          |   | 1,779 |   |
| Total current liabilities                        |                           |                            | 15,892                         |          |   | 17,671 |   |
|                                        |                           |                            |                           |          |   |   |   |
| Long term debt, net                              |                           |                            | 31,897                         |          |   | 32,948 |   |
|                                             |                           |                            |                           |          |   |   |   |
| Stockholders’ equity:                      |                           |                            |                           |          |   |   |   |
| Additional paid-in-capital                       |                           |                            | 90,240                         |          |   | 87,680 |   |
| Accumulated deficit                              |                           |                            | (63,169                        | )             |   | (61,346 | ) |
| Total stockholders’ equity                 |                           |                            | 27,446                         |          |   | 26,709 |   |
| Total liabilities and stockholders’ equity |                           |                            | 76,336                         |          |   | 78,429 |   |

| Consolidated Statement of Operations                                  | Three Months Ended |
|-----------------------------------------------------------------------|--------------------|
| (in thousands)                                                        | July 31, 2010 |
|                                                                  | (As previously     |   |   |   |   |
|                                                                  | reported)          |       | (As restated) |
| Gain from change in fair value of common stock warrant liability | $                  | — |   | $ | 362 |   |
| Interest expense                                                      |               | (433 | ) |   | (412 | ) |
| Loss before income taxes                                              |               | (865 | ) |   | (482 | ) |
| Net loss                                                              |               | (858 | ) |   | (475 | ) |
| Loss per share, basic and dilutive                                    |               | (0.08 | ) |   | (0.04 | ) |

| Consolidated Statement of Cash Flows                                                                  | Three Months Ended |
|-------------------------------------------------------------------------------------------------------|-------------------------|
| (in thousands)                                                                                        | July 31, 2010           |
|                                                                                                  | (As previously          |   |   |   |   |
|                                                                                                  | reported)               |   | (As restated) |
| Cash flows from operating activities:                                                                 |                    |   |   |       |   |   |   |
|        Net loss                                                         | $                       | (858 | ) |   | $ | (475 | ) |
|        Amortization of discount on notes payable                        |                    | 44 |   |   |   | 23 |   |
|        Gain from change in fair value of common stock warrant liability |                    | — |   |   |   | (362 | ) |
| Net cash used in operating activities                                                                 |                    | (2,766 | ) |   |   | (2,766 | ) |

----

| Current assets                                                 |       | $       | 236    |
|----------------------------------------------------------------|--------------------------------|---------------------------------------|--------|
| Long term assets                                               |                           |                                  | 22     |
| Goodwill                                                       |                           |                                  | 780    |
| Intangibles                                                    |                           |                                  | 1,335  |
|        Total assets              |                           | $                                     | 2,373  |
|                                                           |                           |                                  |   |
| Current Liabilities                                            |                           | $                                     | 1,099  |
| Long term liabilities                                          |                           |                                  | 646    |
|        Total liabilities assumed |                           | $                                     | 1,745  |
|                                                           |                           |                                  |   |
|        Total consideration       |                           | $                                     | 628    |
|                                                           |

----

| Consideration                                                                              |                           |                            |   |   |
|--------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------|--------|
| Equity instruments (2,642,600 common shares of Unify)                                      |       | $      | 8,853  |   |
| Contingent consideration arrangement                                                       |                           |                            | 1,499  |   |
|                                                                                       |                           |                            |   |   |
| Fair value of total consideration                                                          |                           | $                               | 10,352 |   |
|                                                                                       |                           |                            |   |   |
| Recognized amounts of identifiable assets acquired and liabilities assumed                 |                           |                            |   |   |
| Financial assets                                                                           |                           | $                               | 117    |   |
| Accounts receivable                                                                        |                           |                            | 561    |   |
| Other assets                                                                               |                           |                            | 640    |   |
| Property, plant and equipment                                                              |                           |                            | 132    |   |
| Identifiable intangible assets                                                             |                           |                            | 8,065  |   |
| Financial liabilities                                                                      |                           |                            | (5,772 | )      |
| Deferred revenue                                                                           |                           |                            | (2,493 | )      |
| Total identifiable net assets                                                              |                           |                            | 1,250  |   |
|                                                                                       |                           |                            |   |   |
| Goodwill                                                                                   |                           |                            | 11,195 |   |
| Change in fair value of contingent consideration                                           |                           |                            | (2,093 | )      |
|                                                                                       |                           | $                               | 10,352 |   |
|                                                                             |                           |                            |   |   |
| Acquisition related costs (included in selling, general and administrative expense in      |                           |                            |   |   |
| Unify's statement of operations for fiscal year 2010, all of which was in the three months |                           |                            |   |   |
| ended July 31, 2009.)                                                                      |                           | $                               | 611    |   |
|                                                                                       |                           |                            |   |   |

| (in thousands, except per share amounts)                  |       | Revenue                         |       | Net loss |        | Net loss per share |
|-----------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|----------|---------------------------------|--------------------|
| Actual from July 1, 2009 to April 30, 2010                |                           | $      | 8,555                          |     | $      | (393               | ) |   | $ |                      (0.04 | ) |
| Supplemental pro forma from May 1, 2009 to April 30, 2010 |                           | $                               | 30,101                         |     | $                               | (2,693             | ) |   | $ | (0.28 | ) |
| Supplemental pro forma from May 1, 2008 to April 30, 2009 |                           | $                               | 32,827                         |     | $                               | (5,920             | ) |   | $ | (0.85 | ) |

----

| Consideration                                                                                 |                           |                            |   |   |
|-----------------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------|--------|
| Cash                                                                                          |       | $      | 24,000 |   |
| Equity instruments (2,085,714 common shares of Unify)                                         |                           |                            | 7,217  |   |
| Convertible notes                                                                             |                           |                            | 6,200  |   |
|                                                                                          |                           |                            |   |   |
| Fair value of total consideration                                                             |                           | $                               | 37,417 |   |
|                                                                                          |                           |                            |   |   |
| Recognized amounts of identifiable assets acquired and liabilities assumed                    |                           |                            |   |   |
| Financial assets                                                                              |                           | $                               | 2,270  |   |
| Accounts receivable                                                                           |                           |                            | 5,823  |   |
| Other assets                                                                                  |                           |                            | 705    |   |
| Property, plant and equipment                                                                 |                           |                            | 1,706  |   |
| Identifiable intangible assets                                                                |                           |                            | 14,700 |   |
| Financial liabilities                                                                         |                           |                            | (2,861 | )      |
| Total identifiable net assets                                                                 |                           |                            | 22,343 |   |
|                                                                                          |                           |                            |   |   |
| Goodwill                                                                                      |                           |                            | 15,074 |   |
|                                                                                          |                           | $                               | 37,417 |   |
|                                                                                          |                           |                            |   |   |
| Acquisition related costs (included in selling, general and administrative expense in Unify's |                           |                            |   |   |
| statement of operations for the three months ended July 31, 2010)                             |                           | $                               | 1,423  |   |
|                                                                                     |                           |                            |   |   |

----

|                                                          |                           |                            |                           |              |                                                                                                                      |      |   |   | Net income (loss)                                                                                                         |
|---------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
| (in thousands, except per share amounts)                      |       | Revenue                         |       | Net income (loss) |                                                                                                  | per share |
| Actual from June 29, 2010 to July 31, 2010                    |                           | $      | 3,016                          |              | $                     | 1,194     |   |   | $                     | 0.11 |   |
| Supplemental pro forma from May 1, 2010 to July 31, 2010      |                           | $                               | 10,709                         |              | $                                                                                                                         | (1,110    | )      |   | $                                                                                                                         | (0.11 | ) |
| Supplemental pro forma from May 1, 2009 to July 31, 2009 |                           | $                               | 12,953                         |              | $                                                                                                                         | (1,501    | )      |   | $                                                                                                                         | (0.18 | ) |

|                                |                           | Three Months Ended              |
|-------------------------------------|--------------------------------|---------------------------------|
|                                |                           | July 31,                        |
|                                |       | 2010                            |       | 2009 |
| Cost of Sales                       |                           | $      | 5 |   | $      | 4 |
| Product Development                 |                           |                            | 38 |   |   | 27 |
| Selling, General and Administrative |                           |                            | 209 |   |   | 120 |
| Total Equity-Based Compensation     |                           | $                               | 252 |   | $ | 151 |
|                                |                           |                            |   |   |   |   |

| Fiscal Year Ending April 30,                                                         |       | Amount                          |
|--------------------------------------------------------------------------------------|--------------------------------|---------------------------------|
|        Remainder of 2011                               |                           | $      | 654 |
|        2012                                            |                           |                            | 675 |
|        2013                                            |                           |                            | 374 |
|        2014                                            |                           |                            | 164 |
|               Total |                           | $                               | 1,867 |
|                                                                                 |                           |                            |   |

----

|                                                     |                           |      |                           |           |                           |            |                           | Weighted  |      |                            |      |
|----------------------------------------------------------|--------------------------------|-----------|--------------------------------|----------------|--------------------------------|-----------------|--------------------------------|-----------|-----------|---------------------------------|-----------|
|                                                     |                           |      |                           |           | Weighted                       |            | average remaining              |      | Aggregate |
|                                                     |                           |      |                           |           | average                        |            | contractual                    |      | intrinsic |
|                                                     |       | Shares    |       | exercise price |       | term (in years) |       | value (1) |
| Outstanding at April 30, 2010                            |                           | 1,663,497 |                           |           | $                              | 3.31            |                           | 7.12      |      | $      | 1,271,375 |
|        Granted             |                           | 413,700   |                           |           | $                              | 3.55            |                           |      |      |                            |      |
|        Exercised           |                           | —   |                           |           | $                              | —         |                           |      |      |                            |      |
|        Canceled or expired |                           | (13,209   | )                              |           | $                              | 3.25            |                           |      |      |                            |      |
| Outstanding at July 31, 2010                             |                           | 2,063,988 |                           |           | $                              | 3.38            |                           | 7.20      |      | $                               | 922,234   |
|                                                     |                           |      |                           |           |                           |            |                           |      |      |                            |      |
| Exercisable at July 31, 2010                             |                           | 980,093   |                           |           | $                              | 3.23            |                           | 6.26      |      | $                               | 660,861   |

| (1) |       | Aggregate intrinsic value is defined as the difference between the current market value and the exercise price and is estimated using the closing price of the Company’s common stock on the last trading day of the periods ended as of the dates indicated. |
|-----|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |                           |      |                           |   | Weighted                        |
|----------------------------------------------------------|--------------------------------|-----------|--------------------------------|--------|---------------------------------|
|                                                     |                           |      |                           |   | average fair                    |
|                                                     |       | Shares    |       | value  |
| Nonvested at April 30, 2010                              |                           | 814,343   |                           |   | $      | 3.50 |
|        Granted             |                           | 413,700   |                           |   | $                               | 2.28 |
|        Vested              |                           | (132,293  | )                              |   | $                               | 2.29 |
|        Canceled or expired |                           | (11,855   | )                              |   | $                               | 2.02 |
| Nonvested at July 31, 2010                               |                           | 1,083,895 |                           |   | $                               | 3.19 |
|                                                     |                           |      |                           |   |                            |   |

----

|                                                                                 |                           | Gross                           |                           |         |                            |                            |                           | Net         |                            |    |
|--------------------------------------------------------------------------------------|--------------------------------|---------------------------------|--------------------------------|--------------|---------------------------------|---------------------------------|--------------------------------|-------------|---------------------------------|---------|
|                                                                                 |                           | carrying                        |                           | Accumulated  |                            | carrying                        |                           | Estimated   |
| July 31, 2010                                                                        |       | amount                          |       | amortization |        | amount                          |       | useful life |
| Infinite Lives:                                                                      |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |   |
|        Goodwill                                        |                           | $      | 33,010                         |         | $      | —                         |                           |        | $      | 33,010  |   | — |
| Finite Lives:                                                                        |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |   |
|        Customer-related                                |                           |                            | 8,337                          |         |                            |      (1,445 | )                              |        |                            | 6,892   |   | 5 to 10 years |
|        Technology-based                                |                           |                            | 13,587                         |         |                            | (2,680                          | )                              |        |                            | 10,907  |   | 0.5 to 6 years |
|        Trademarks                                      |                           |                            | 3,500                          |         |                            | (568                            | )                              |        |                            | 2,932   |   | 0.5 to 5 years |
|        Patents                                         |                           |                            | 1,000                          |         |                            | (8                              | )                              |        |                            | 992     |   | 10 Years |
|        Trade name                                      |                           |                            | 197                            |         |                            | (149                            | )                              |        |                            | 48      |   | 2 years |
|        Backlog                                         |                           |                            | 300                            |         |                            | (133                            | )                              |        |                            | 167     |   | 0.5 years |
|        Non-compete                                     |                           |                            | 603                            |         |                            | (63                             | )                              |        |                            | 540     |   | 3 to 3.3 years |
|        Consulting agreement                            |                           |                            | 133                            |         |                            | (133                            | )                              |        |                            | — |   | 1 year |
|               Total |                           | $                               | 60,667                         |         | $                               | (5,179                          | )                              |        | $                               | 55,488  |   |   |
|                                                                                 |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |
|                                                                                 |                           | Gross                           |                           |         |                            |                            |                           | Net         |                            |    |
|                                                                                 |                           | carrying                        |                           | Accumulated  |                            | carrying                        |                           | Estimated   |
| April 30, 2010                                                                       |       | amount                          |       | amortization |        | amount                          |       | useful life |
| Infinite Lives:                                                                      |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |   |
|        Goodwill                                        |                           | $      | 17,928                         |         | $      | —                         |                           |        | $      | 17,928  |   | — |
| Finite Lives:                                                                        |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |   |
|        Customer-related                                |                           |                            | 4,136                          |         |                            | (1,268                          | )                              |        |                            | 2,868   |   | 5 to 10 years |
|        Technology-based                                |                           |                            | 6,787                          |         |                            | (2,220                          | )                              |        |                            | 4,567   |   | 0.5 to 6 years |
|        Trademarks                                      |                           |                            | 1,500                          |         |                            | (456                            | )                              |        |                            | 1,044   |   | 0.5 to 5 years |
|        Trade name                                      |                           |                            | 197                            |         |                            | (140                            | )                              |        |                            | 57      |   | 2 years |
|        Backlog                                         |                           |                            | 100                            |         |                            | (100                            | )                              |        |                            | — |   | 0.5 years |
|        Non-compete                                     |                           |                            | 103                            |         |                            | (32                             | )                              |        |                            | 71      |   | 3 to 3.3 years |
|        Consulting agreement                            |                           |                            | 133                            |         |                            | (127                            | )                              |        |                            | 6       |   | 1 year |
|               Total |                           | $                               | 30,884                         |         | $                               | (4,343                          | )                              |        | $                               | 26,541  |   |   |
|                                                                            |                           |                            |                           |         |                            |                            |                           |        |                            |    |   |   |

| Fiscal Year Ending April 30,               |       | Amount                          |
|--------------------------------------------|--------------------------------|---------------------------------|
| Remainder of 2011                          |                           | $      | 3,495 |
| 2012                                       |                           |                            | 3,971 |
| 2013                                       |                           |                            | 3,415 |
| 2014                                       |                           |                            | 3,275 |
| 2015                                       |                           |                            | 3,047 |
| 2016                                       |                           |                            | 2,096 |
| Thereafter                                 |                           |                            | 3,179 |
|        Total |                           | $                               | 22,478 |
|                                       |                           |                            |   |

- Increased Market Presence and Opportunities:  The addition of the acquired companies should increase the combined company’s market presence and opportunities for growth in sales and earnings. 

----

- Enhanced Product Mix:  The complementary nature of the Company’s products with its acquisitions should benefit current customers and provide the combined company with the ability to access new customers.  
- Operating Efficiencies:  The combination of the Company with its acquisitions provides the opportunity for potential economies of scale and cost savings. 

- Level 1 – Quoted prices in active markets for identical assets and liabilities.  Level 1 is generally considered the most reliable measurement of fair value under ASC 820.  
- Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.    
- Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 

|                           | Fair Value    |                     | Fair value measurement using |
|--------------------------------|---------------|--------------------------|------------------------------|
|                           | July 31, 2010 |      | Level 1                      |      | Level 2 |      | Level 3 |
| Common stock warrant liability | $             | 1,779                    |                         | $ | — |   | $ | — |   | $ | 1,779 |

----

| (in thousands)                                         | Common Stock Warrants |
|--------------------------------------------------------|-----------------------|
| Balance at May 1, 2010                                 | $                     |   |      1,047 |   |
| Issuance of common stock warrants                      |                  |   |      1,094 |   |
| Change in fair value of common stock warrant liability |                  |   | (362 | ) |
| Balance at July 31, 2010                               | $                     |   | 1,779 |   |
|                                                   |                  |   |   |   |

|                                                                                                                                              |                           | July 31,                                          |                           | April 30, |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------------------|--------------------------------|-----------|
|                                                                                                                                              |       | 2010                                              |       | 2010      |
|                                                                                                                                              |                           | (as restated)                                     |                           |      |
| Term Note Payable to Hercules Technology II, L.P., the proceeds of which were used to                                                             |                           |                                              |                           |      |   |   |   |   |
| fund the cash portion of the consideration to aquire Daegis - see Note 3, interest rate at                                                        |                           |                                              |                           |      |   |   |   |   |
| the prevailing LIBOR rate plus 8.25% per annum with a minimum rate of 10.25%                                                                      |                           |                                              |                           |      |   |   |   |   |
| (10.25% at July 31, 2010) plus 2% interest to be paid in kind through maturity on                                                                 |                           |                                              |                           |      |   |   |   |   |
| June 29, 2015. This note is secured by an interest in substantially all of the Company's                                                     |                           |                                              |                           |      |   |   |   |   |
| assets. This note includes certain financial covenants and the Company is in                                                                 |                           |                                              |                           |      |   |   |   |   |
| compliance with such covenants at July 31, 2010.                                                                                                  |                           | $         | 24,044                         |      |   | $         | — |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Subordinated Purchase (Convertible) Note Payable to the former Daegis shareholders,                                                               |                           |                                              |                           |      |   |   |   |   |
| interest rate of 8%, payable September 2015. The note was converted on September 1, 2010 - see Note 15.                                           |                           |                                              | 5,000                          |      |   |   | — |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Subordinated Indemnity (Escrow) Note Payable to the former Daegis shareholders,                                                                   |                           |                                              |                           |      |   |   |   |   |
| interest rate of 3% for the first 18 months and 8% thereafter, payable September 2015. The note was converted on September 1, 2010 - see Note 15. |                           |                                              | 1,200                          |      |   |   | — |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Hercules Technology II, L.P., credit facility, interest rate at prevailing LIBOR rate plus                                                        |                           |                                              |                           |      |   |   |   |   |
| 7.25% per annum with a minimum rate of 9.25% (9.25% at July 31, 2010), payable                                                                    |                           |                                              |                           |      |   |   |   |   |
| June 29, 2015.                                                                                                                                    |                           |                                              | 4,000                          |      |   |   | — |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Convertible notes payable to ComVest Capital LLC, interest rate of 5%. The Comvest                                                                |                           |                                              |                           |      |   |   |   |   |
| notes were repaid on June 29, 2010.                                                                                                               |                           |                                              | —                        |      |   |   | 377 |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Note Payable, interest rate of 5%, payable in installments through April 2011.                                                                    |                           |                                              | 457                            |      |   |   | 627 |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| ComVest Capital LLC credit facility, interest rate 5.5%, repaid on June 29, 2010.                                                                 |                           |                                              | —                        |      |   |   | 350 |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Other notes payable                                                                                                                               |                           |                                              | 4                              |      |   |   | 4 |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |
| Capital leases payable, payable in monthly installments through June 2013.                                                                        |                           |                                              | 831                            |      |   |   | 52 |   |
|                                                                                                                                              |                           |                                              | 35,536                         |      |   |   | 1,410 |   |
| Less discount on notes payable                                                                                                                    |                           |                                              | (1,072                         | )         |   |   | (1 | ) |
| Less current portion                                                                                                                              |                           |                                              | (1,516                         | )         |   |   | (1,397 | ) |
| Total long term debt, net                                                                                                                         |                           | $                                                 | 32,948                         |      |   | $ | 12 |   |
|                                                                                                                                              |                           |                                              |                           |      |   |   |   |   |

----

|                                                      |                           | Three Months Ended              |
|-----------------------------------------------------------|--------------------------------|---------------------------------|
|                                                      |                           | July 31,                        |
|                                                      |       | 2010                            |       | 2009 |
| Deferred maintenance revenue beginning balance            |                           | $      | 9,642 |   |   | $      | 5,473 |   |
| Deferred maintenance revenue recognized during period     |                           |                            | (4,686 | ) |   |   | (2,580 | ) |
| Deferred maintenance revenue of new maintenance contracts |                           |                            | 2,949 |   |   |   | 4,910 |   |
| Deferred maintenance revenue ending balance               |                           | $                               | 7,905 |   |   | $ | 7,803 |   |
|                                                      |                           |                            |   |   |   |   |   |   |

----

|                                                         |                           | Three Months Ended                                            |
|--------------------------------------------------------------|--------------------------------|---------------------------------------------------------------|
| (in thousands, except per share amounts)                     |                           | July 31,                                                      |
|                                                         |       | 2010                                                          |       | 2009 |
|                                                         |                           | (As Restated)                                                 |   |   |
| Net loss                                                     |                           | $           | (475 | ) |   | $           | (2,433 | ) |
|                                                         |                           |                                                          |   |   |   |   |   |   |
| Weighted average shares of common stock outstanding, basic   |                           |                                                          | 11,240 |   |   |   | 8,367 |   |
| Effect of dilutive securities                                |                           |                                                          | — |   |   |   | — |   |
| Weighted average shares of common stock outstanding, diluted |                           |                                                          | 11,240 |   |   |   | 8,367 |   |
|                                                         |                           |                                                          |   |   |   |   |   |   |
| Loss per share of common stock:                              |                           |                                                          |   |   |   |   |   |   |
|        Basic                   |                           | $                                                             | (0.04 | ) |   | $ | (0.29 | ) |
|        Diluted                 |                           | $                                                             | (0.04 | ) |   | $ | (0.29 | ) |

----

|                                                                                                             |                           | Three Months Ended                    |
|------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------------------------------|
|                                                                                                             |                           | July 31,                              |
|                                                                                                             |       | 2010                                  |       | 2009 |
| Total revenues:                                                                                                  |                           |                                  |   |   |   |   |
|        Database and development products and modernization and migration solutions |                           | $       | 4,321 |   | $       | 3,428 |
|        eDiscovery and integrated content archiving solutions                       |                           |                                  | 5,564 |   |   | 1,083 |
|               Total revenues                    |                           | $                                     | 9,885 |   | $ | 4,511 |
|                                                                                                             |                           |                                  |   |   |   |   |
| Cost of revenue:                                                                                                 |                           |                                  |   |   |   |   |
|        Database and development products and modernization and migration solutions |                           | $                                     | 765 |   | $ | 413 |
|        eDiscovery and integrated content archiving solutions                       |                           |                                  | 1,524 |   |   | 181 |
|               Total cost of revenues            |                           | $                                     | 2,289 |   | $ | 594 |
|                                                                                                             |                           |                                  |   |   |   |   |
| Gross profit:                                                                                                    |                           |                                  |   |   |   |   |
|        Database and development products and modernization and migration solutions |                           | $                                     | 3,556 |   | $ | 3,015 |
|        eDiscovery and integrated content archiving solutions                       |                           |                                  | 4,040 |   |   | 902 |
|               Total gross profit                |                           | $                                     | 7,596 |   | $ | 3,917 |
|                                                                                                             |

----

----

----

----

|                                                                                                          |                           | Three Months Ended                                               |
|---------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------------------------------------------|
|                                                                                                          |                           | July 31,                                                         |
|                                                                                                          |       | 2010                                                             |       | 2009 |
|                                                                                                          |                           | (As Restated)                                                    |   |   |
| Revenues:                                                                                                     |                           |                                                             |   |   |   |   |
|        Software licenses                                                        |                           |           13.5 | % |   | 31.1 | % |
|        Maintenance and Hosting                                                  |                           | 53.5                                                             | % |   | 60.7 | % |
|        Consulting and Implementation Services                                   |                           | 33.0                                                             | % |   | 8.2 | % |
|               Total revenues                 |                           | 100.0                                                            | % |   |           100.0 | % |
|                                                                                                          |                           |                                                             |   |   |   |   |
| Cost of Revenues:                                                                                             |                           |                                                             |   |   |   |   |
|        Software licenses                                                        |                           | 0.3                                                              | % |   | 0.8 | % |
|        Maintenance and Hosting                                                  |                           | 5.0                                                              | % |   | 7.5 | % |
|        Consulting and Implementation Services                                   |                           | 17.9                                                             | % |   | 4.8 | % |
|               Total cost of revenues         |                           | 23.2                                                             | % |   | 13.1 | % |
|                                                                                                          |                           |                                                             |   |   |   |   |
| Gross profit                                                                                                  |                           | 76.8                                                             | % |   | 86.9 | % |
|                                                                                                          |                           |                                                             |   |   |   |   |
| Operating Expenses:                                                                                           |                           |                                                             |   |   |   |   |
|        Product development                                                      |                           | 18.0                                                             | % |   | 31.1 | % |
|        Selling, general and administrative                                      |                           | 61.9                                                             | % |   | 106.8 | % |
|               Total operating expenses       |                           | 79.9                                                             | % |   | 137.9 | % |
|        Loss from operations                                                     |                           | (3.1                                                             | )% |   | (51.0 | )% |
| Other income (expense):                                                                                       |                           |                                                             |   |   |   |   |
|        Gain (loss) from change in fair value of                                 |                           |                                                             |   |   |   |   |
|               common stock warrant liability |                           | 3.7                                                              |   |   | (4.5 | ) |
|        Interest expense                                                         |                           | (4.2                                                             | ) |   | (1.3 | ) |
|        Other, net                                                               |                           | (1.2                                                             | ) |   | 3.1 |   |
|               Total other expense            |                           | (1.7                                                             | ) |   | (2.7 | ) |
|        Loss before income taxes                                                 |                           | (4.8                                                             | )% |   | (53.7 | )% |
| Provision for income taxes                                                                                    |                           | (0.1                                                             | )% |   | 0.2 | % |
|        Net loss                                                                 |                           | (4.7                                                             | )% |   | (53.9 | )% |
|                                                                                                          |

----

----

----

|                               |                           | Payments Due by Period                |
|------------------------------------|--------------------------------|---------------------------------------|
|                               |                           |                                  |   |   | 1 year |   | 2-3 |   | 4-5 |   | After 5 |
| Contractual Obligations            |       | Total                                 |       | or less |       | years |       | years |       | years |
| Notes payable                      |                           | $       | 34,705 |   | $       | 1,160 |   | $       | 5,001 |   |   | 22,344 |   |   | 6,200 |
| Estimated interest expense         |                           |                                  | 12,605 |   |   | 2,945 |   |   | 5,569 |   |   | 4,008 |   |   | 83 |
| Other liabilities                  |                           |                                  | 136 |   |   | 40 |   |   | — |   |   | 96 |   |   | — |
| Capital leases                     |                           |                                  | 831 |   |   | 356 |   |   | 475 |   |   | — |   |   | — |
| Operating leases                   |                           |                                  | 5,349 |   |   | 1,882 |   |   | 2,257 |   |   | 970 |   |   | 240 |
| Total contractual cash obligations |                           | $                                     | 53,626 |   | $ | 6,383 |   | $ | 13,302 |   | $       | 27,418 |   | $       | 6,523 |
|                               |

----

----

----

----

|   |                           | Exhibits                                                                                                                                   |
|--------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   |       | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.                                              |
|   |                           |                                                                                                                                       |
| 31.2   |                           | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.                                              |
|   |                           |                                                                                                                                       |
| 32.1   |                           | Certification of Chief Executive Officer under 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |                           |                                                                                                                                       |
| 32.2   |                           | Certification of Chief Financial Officer under 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

| Date: March 8, 2011 | Unify Corporation                            |
|--------------------------|----------------------------------------------|
|                     | (Registrant)                                 |
|                     |                                         |
|                     | By:                                          |
|                     |                                         |
|                     | /s/ STEVEN D. BONHAM                         |   |
|                     | Steven D. Bonham                             |
|                     | Chief Financial Officer                      |
|                     | (Principal Financial and Accounting Officer) |   |

----